After 5 days of gain, naira weakens against dollar as CBN speaks on cash scarcity

The Nigerian currency, the naira hit an intraday high of N1,249 per dollar as it further plummeted against the US dollar on Thursday, December 21, 2023, to close at N861/per dollar.

The naira depreciated by 0.85% against the dollar at the official NAFEM.

The naira loses N7.3 against the dollar

The development means the naira lost about N7.3 or 0.85% of its value compared to the N854.61 per dollar it closed on Wednesday, December 20, 2023.

The intraday high of N1,240 per dollar and an intraday low of N700 represent a gap of N549 per dollar. Forex turnover at NAFEM stood at $181.30 million, the same as it closed the day before.

The local currency gained slightly at the parallel market, trading at N1228 per dollar, representing 0.81%, while the peer-to-peer exchange rate traded at around N1,193.20 per dollar.

CBN sends warnings to commercial banks and PoS operators against cash hoarding

The development comes as the Central Bank of Nigeria (CBN) blamed bank workers for colluding with Point of Sale (PoS) operators to cause cash scarcity.

According to reports, the apex bank issued a warning against commercial banks and PoS operators over the hoarding of cash in Nigeria.

The bank disclosed this in a statement signed by its acting director of Corporate Communications, Hakama Sidi-Ali, on Thursday, October 21, 2023.

he bank said commercial bank workers are colluding with PoS agents to disrupt the circulation of naira notes. The circular stated that the public should report issues of unauthorized cash hoarding by banks or PoS agents to the CBN in their areas or its portal.

CBN said: “Meanwhile, members of the public are encouraged to use alternative payment channels as well as report any case of unauthorized activities, such as capping and hoarding, by banks or PoS agents to the CBN branch in their locations or via the link: https://forms.office.com/r/frZJ0f2hFQ to address complaints and inquiries on the subject.”